Disney's strong quarter driven by 'Toy Story 5' and the draw of its US
theme parks
[August 06, 2026] By
MICHELLE CHAPMAN
Disney's solid third quarter was driven by a $1 billion box office haul
from “Toy Story 5” and the strong draw of U.S. theme parks that helped
to offset continued weakness from international tourism.
Disney also announced a global short-form content sharing deal with
TikTok on Wednesday. The agreement will bring Disney-focused fan-created
content from TikTok to the Disney+ app.
Shares climbed nearly 3% in early morning trading on Wednesday.
The Walt Disney Co. cautioned earlier this year that its theme parks
division would likely see modest growth due in part to declining tourism
from abroad.
International tourism in the U.S. has waned for a number of reasons
after President Donald Trump’s return to the White House, including
tariffs, a crackdown on immigrants, and repeated jabs at alliednations.
The Experiences division, which includes Disney’s six global theme
parks, its cruise line, merchandise and video game licensing, reported
that operating income climbed 20% to $3.02 billion and revenue totaled
$9.97 billion. Operating income rose 27% at domestic parks, while
operating income declined 13% for international parks and Experiences.
Overall attendance at U.S. parks climbed 3% from a year ago on an
increase in attendance from domestic tourists and annual passholders.
The company said the performance was also helped by summer promotions
and new experiences being offered at the parks.
CEO Josh D'Amaro, during a conference call after the first full quarter
he has overseen since taking over for Bob Iger about five months ago,
said that spending was also up at domestic parks despite the current
economic uncertainty.
“The consistent investments that we’ve made over time, combined with the
fact that the experience Disney provides to its fans, it’s truly
differentiated and highly valued,” he said.
The growth in attendance at parks is being driven by U.S. residents, but
Disney is also seeing more robust traffic at domestic parks from
overseas visitors.
D’Amaro became the 9th CEO of the 100 plus-year-old company after
overseeing Disney theme parks, cruises and resorts for about six years.
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In this Nov. 13, 2019 file photo, a Disney logo forms part of
a menu for the Disney Plus movie and entertainment streaming service
on a computer screen in Walpole, Mass. (AP Photo/Steven Senne, File)
 Disney got a substantial boost from
“Toy Story 5” during the third quarter, which has already pulled in
$1 billion at the box office globally. The film boosted interest in
other Toy Story films on Disney+ as well, and Toy Story merchandise
sales helped give the company its strongest quarter of
year-over-year growth in consumer products revenue in 20 quarters.
The company also noted the strong performance of “The Devil Wears
Prada 2,” particularly overseas.
Revenue for the entertainment streaming business - which includes
Disney+ and Hulu - climbed 11% to $5.53 billion. The results were
helped by adding more subscribers, price increases and higher
advertising revenue.
Disney continues its transformation from cable to streaming
entertainment as viewers cut the cord in huge numbers.
The company on Wednesday announced that it is selling its 50% stake
in A+E Global Media, the owner and operator of the History and
Lifetime channels.
A+E Global has been a joint venture between Disney and Hearst, and
an affiliate of Hearst is buying Disney's stake for $1.2 billion.
Disney earned $2.64 billion, or $1.51 per share, for the three
months ended June 27. It earned $5.26 billion, or $2.92 per share, a
year ago.
Removing one-time charges and benefits, earnings were $2.06 per
share. That easily topped the $1.86 per share that analysts polled
by FactSet predicted.
Revenue for the Burbank, California-based company rose 7% to $25.25
billion. Wall Street was looking for $25.39 billion.
Disney said it recorded an approximately $100 million tariff refund
after the Supreme Court struck down some of President Donald Trump’s
most sweeping levies on trade. The company said that it may receive
additional refunds in future quarters, but that the monetary amounts
are expected to be insignificant.
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